Index Membership and Market Capitalisation
Bajaj Auto Ltd. holds a commanding presence within the Nifty 50, India’s premier equity benchmark. With a market capitalisation of approximately ₹2,68,841 crores, it ranks as a large-cap stock, reflecting its substantial weight in the index. This membership not only enhances the stock’s visibility among institutional investors but also ensures its inclusion in numerous index-tracking funds and ETFs, thereby supporting liquidity and demand.
The company’s Price-to-Earnings (P/E) ratio stands at 30.07, which is notably below the automobile industry average of 34.04, suggesting a relatively attractive valuation compared to its peers. This valuation metric, combined with its large-cap status, positions Bajaj Auto as a compelling option for investors seeking exposure to the automobile sector within a benchmark framework.
Recent Trading Performance and Technical Indicators
On 6 Feb 2026, Bajaj Auto’s stock price closed marginally lower by 0.17%, underperforming the automobile sector by 0.34%. The stock opened at ₹9,575.7 and traded steadily at this level throughout the day. Notably, it remains just 3.39% shy of its 52-week high of ₹9,900, signalling resilience amid market fluctuations.
Technically, Bajaj Auto is trading above its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a sustained upward trend over multiple time horizons. However, the stock experienced a trend reversal after four consecutive days of gains, which may prompt cautious short-term positioning among traders.
Sectoral Context and Earnings Results
The automobile two and three-wheelers sector has witnessed mixed results in the recent earnings season. Out of 131 stocks that declared results, 46 reported positive outcomes, 73 remained flat, and 12 posted negative results. Bajaj Auto’s performance within this context is noteworthy, as it continues to outperform the Sensex and many sector peers over various time frames.
Its one-year return of 8.81% surpasses the Sensex’s 6.65%, while the three-year and five-year returns are particularly impressive at 150.10% and 127.37%, respectively, compared to the Sensex’s 37.59% and 64.10%. Over a decade, Bajaj Auto has delivered a remarkable 307.56% gain, outpacing the Sensex’s 238.17%, underscoring its long-term growth trajectory and investor confidence.
Momentum just kicked in! This Small Cap from the Auto - Trucks sector entered our list with explosive short-term signals. Catch the wave while it's still building!
- - Fresh momentum detected
- - Explosive short-term signals
- - Early wave positioning
Institutional Holding and Market Sentiment
Institutional investors continue to favour Bajaj Auto, reflecting confidence in its business model and growth prospects. The company’s Mojo Score of 74.0, upgraded from a previous Hold to a Buy rating on 3 Feb 2026, further validates its improving fundamentals and market positioning. This upgrade signals enhanced investor sentiment and is likely to attract additional institutional inflows.
Moreover, Bajaj Auto’s Market Cap Grade of 1 highlights its status as a top-tier large-cap stock, which often benefits from stable institutional ownership and lower volatility relative to mid and small caps. This stability is crucial for investors seeking reliable exposure within the automobile sector, especially given the cyclical nature of the industry.
Comparative Performance and Benchmark Impact
When benchmarked against the Sensex, Bajaj Auto’s performance remains robust. While the Sensex declined by 0.08% on the day, Bajaj Auto’s slight underperformance of 0.17% is marginal and does not detract from its overall positive trend. Over the year-to-date period, the stock has gained 2.99%, contrasting with the Sensex’s 2.31% decline, reinforcing its defensive qualities within a volatile market environment.
Its one-month performance of -0.38% is better than the Sensex’s -2.13%, and the three-month gain of 10.40% significantly outpaces the Sensex’s flat performance. These metrics highlight Bajaj Auto’s ability to deliver superior returns relative to the broader market, a key consideration for portfolio managers and index fund strategists alike.
Thinking about Bajaj Auto Ltd.? Our real-time Verdict report breaks down everything – from financial health and peer comparison to technical signals and fair valuation for this large-cap stock!
- - Real-time Verdict available
- - Financial health breakdown
- - Fair valuation calculated
Outlook and Investor Considerations
Looking ahead, Bajaj Auto’s position as a Nifty 50 constituent ensures continued attention from both domestic and global investors. Its strong fundamentals, demonstrated by consistent earnings and a favourable valuation relative to the industry, provide a solid foundation for future growth. The recent Mojo Grade upgrade to Buy reflects an improved outlook, supported by steady institutional interest and technical strength.
However, investors should remain mindful of short-term volatility, as evidenced by the recent trend reversal after a series of gains. The automobile sector’s sensitivity to macroeconomic factors such as fuel prices, regulatory changes, and consumer demand fluctuations also warrants careful monitoring.
In summary, Bajaj Auto Ltd. remains a cornerstone stock within the Nifty 50, combining benchmark status with strong performance metrics and institutional backing. Its blend of growth potential and relative stability makes it a key consideration for investors seeking exposure to India’s dynamic automobile industry.
Unlock special upgrade rates for a limited period. Start Saving Now →
